“If you can’t explain it simply, you don’t understand it well enough.“ (Albert Einstein)
Germany is once again in the pillory. The charge is that of repeated excessively high current account surpluses. This year they are particularly high at almost 9% of GDP. Germany has once again failed to comply with the 6% recommendation of the EU Commission. The circle of prosecutors is illustrious: Southern European deficit countries, the chronically deficit USA, and the International Monetary Fund. The economic justification for the accusation is neo-Keynesian. The claim is that Germany is living with its surpluses at the expense of the deficit countries, drawing off their aggregate demand. They say that this doesn’t just take the axe to the Euro, it also destabilizes the global economy. But it isn’t the only culprit. China and Japan are thought to have aided and abetted.
„Germany in the pillory
Balances and imbalances in the current account“ weiterlesen